Spend Culture · 2025-04-30 · 12 min
Key moments - from our scoring
Substance score
26 / 100
Five dimensions, 20 points each
This episode unpacks Procurify's 2025 Procurement Benchmark Report, which draws on over $20 billion of real transaction data rather than survey estimates. The hosts explore four strategic procurement objectives and their associated KPIs, providing finance and procurement leaders with concrete industry benchmarks to assess their own operations. The first objective, drive process efficiency, examines requisition-to-PO cycle time (ranging from 0.63 hours in travel/hospitality to 19.61 hours in education) and AP processing time (biotech/pharma at 101.31 hours versus travel/hospitality at 28.48 hours). The second, maximize supplier value, looks at vendor count, average spend per vendor, items per vendor, spend concentration with top five suppliers, and adoption of pre-approved supplier catalogs and punch-out catalogs. Third is reducing costs through metrics like average spend per PO and yearly PO volume - with healthcare processing over 1,000 purchase orders annually versus software at 383. The final objective, monitoring financial health, tracks annual spend and weekly purchase volume as leading indicators of business stability. The report notes high-performing companies achieve 75-85% spend under management (formal procurement processes), and shares real-world results including a 5-10x purchasing process improvement at Meetrashem and 70% procurement savings at a consulting firm using Procurify.
It's built on over $20 billion of anonymized procurement transaction data from real organizations, providing actual spend patterns rather than survey estimates.
Drive process efficiency, maximize value from suppliers, reduce costs and enhance resource management, and monitor financial health and growth indicators.
It varies significantly by industry: biotech and pharma average 101.31 hours, while travel and hospitality average 28.48 hours; slow AP processing creates late fees and strained supplier relationships.
It's the percentage of total spend flowing through formal controlled procurement processes; high-performing companies achieve 75-85%, indicating compliance, strategic sourcing, and financial control.
Punch-out catalogs link your procurement system directly to a supplier's website for seamless ordering within pre-negotiated terms, resulting in faster processing and better pricing control.
Our reviewer’s read on each dimension, with quotes from the episode.
The episode surfaces a genuine tranche of benchmark data with specific cross-industry KPI comparisons (cycle times, PO volumes, vendor concentration), but the analytical layer is thin - numbers are read out rather than interpreted, and 'actionable steps' collapse into generic advice like 'streamline approvals' or 'consolidate suppliers.' The filler and affirmations consume significant airtime.
travel and hospitality averages just 0.63 hours. Super fast. Wow. But then you look at education, and it's around 19.61 hours on average.
high performing Companies often hit 75, 85% sum
This is a vendor marketing piece dressed as analysis; every framework (efficiency, supplier value, cost reduction, financial health) is textbook procurement and every recommendation is recycled best practice. There is no contrarian claim, no first-principles reasoning, and no finding that challenges conventional wisdom.
turning procurement into a strategic advantage, not just a cost center
Are we relying on too many vendors? Are we tracking vendor performance and cost savings? Are we strategically pushing spend towards preferred suppliers?
There are no actual guests - two unnamed, clearly scripted speakers simply narrate a vendor report. The only practitioners referenced are quoted briefly from the report itself and are not present in the conversation, meaning there is no real-world operator perspective to evaluate.
There's a really compelling quote in the report from Vikas Kante, head of finance at Meetrashem
There's another great quote here from a global IT executive at a consulting firm.
The episode earns partial credit for citing precise cross-industry figures (e.g., AP processing 101.31 hours for biotech vs. 28.48 for travel, $880K average spend per vendor in manufacturing), but all data originates from the vendor's own proprietary dataset with no independent validation, and headline customer claims ('5-10x improvement,' '70% savings') lack any methodological context.
Biotech and pharma, they average about 101.31 hours. Okay, that seems quite long compared to travel and hospitality. Again, much quicker at 28.48 hours
Software shows a really high figure. Over $14 billion on average.
Speaker B functions entirely as a scripted reactor - affirming, rephrasing, and expressing staged surprise - with no genuine follow-up questions, no probing of methodology, and no pushback on any claim. The dialogue is indistinguishable from a narrated marketing brochure split across two voices.
Sounds good. Where do we start?
Oh yeah. What did he say?
Computed from the transcript - who did the talking, and the words that came up most.
In this Digest edition of Spend Culture, we break down key insights from Procurify’s 2025 Procurement Benchmark Report. Built on $20B+ in real procurement data, this episode explores how organizations can use benchmarking across 11 key KPIs to spot inefficiencies and identify opportunities for optimization. The KPIs are tied to major procurement objectives like maximizing supplier value, cutting costs, and tracking procurement’s impact on financial health. We walk through the report’s major objectives, highlight the critical metrics, and share how you can use these benchmarks to assess performance and guide future improvements. This episode was generated using AI narration to deliver insights quickly and efficiently.
Transcribed and scored by The B2B Podcast Index.
Speaker A: Okay, today we're diving deep into the 2025 Procurement Benchmark Report by Procurify.
Speaker B: And what's really interesting right off the bat is the data source.
Speaker A: Exactly. It's built on, get this, over $20 billion of anonymized procurement data.
Speaker B: Yeah, that's huge. It gives such a solid, real world foundation. Not just survey guesswork, real transactions.
Speaker A: It really does. So you get this data backed, look at what's happening across different industries, and it's specifically designed to help, you know, finance and procurement leaders like you benchmark
Speaker B: yourselves and find those areas for, um, improvement.
Speaker A: Absolutely. So in our chat today, we're going to unpack the key findings. We'll walk through the four main objectives the report identifies for procurement, look at
Speaker B: the specific KPIs under each one. Right.
Speaker A: And discuss actionable steps you can actually take based on these benchmarks. The whole idea is to turn your spend into a real strength for the organization.
Speaker B: Sounds good. Where do we start?
Speaker A: So the first key area the report zeroes in on is drive process efficiency.
Speaker B: Always a big one. Efficiency it is.
Speaker A: And the report highlights how delays, you know, in that whole requisition to purchase process can lead to some pretty significant hidden costs.
Speaker B: Things you might not even track directly. Like missed discounts.
Speaker A: Exactly. Missed discounts. Paying extra for rushed shipping, even project stalls that can hit the bottom line.
Speaker B: So faster cycles aren't just about speed. They actually improve cash flow and stop those operational headaches.
Speaker A: Precisely. It prevents those bottlenecks and it frees up your team.
Speaker B: Right. Less time bogged down. An admin on strategic stuff.
Speaker A: That's a great point. So the first KPI here is requisition to purchase order cycle time.
Speaker B: Okay, so how long from the initial request until the PO is actually approved?
Speaker A: You got it. And the industry comparisons are fascinating. Uh, travel and hospitality averages just 0.63 hours. Super fast. Wow. But then you look at education, and it's around 19.61 hours on average.
Speaker B: Big difference. That probably reflects, you know, more complex approvals or maybe different purchasing needs in education versus the urgency in travel.
Speaker A: It makes you wonder, where does your own organization fall on that spectrum?
Speaker B: That's the key question, isn't it? Knowing where you stand.
Speaker A: Then the second KPI is AP processing time. So this tracks the time from getting an invoice to actually paying it.
Speaker B: Another critical part of the cycle.
Speaker A: Totally. And again, big variations. Biotech and pharma, they average about 101.31 hours. Okay, that seems quite long compared to travel and hospitality. Again, much quicker at 28.48 hours and slow AP.
Speaker B: Well, that means potential late fees. Maybe damaging supplier relationships too.
Speaker A: Definitely. Strained relationships can have knock on effects later for sure.
Speaker B: Affecting negotiations, pricing, reliability.
Speaker A: So, thinking about actions, what can you do with this info? The report suggests asking some pointed questions. Like uh, are approval workflows slowing things down unnecessarily? Where are the biggest delays happening? Is our process even scalable if volume increases?
Speaker B: Good questions. Really digging into the why behind your numbers.
Speaker A: Yeah, and based on your answers and how you compare to your industry, maybe you need to streamline approvals or track cycle times more granularly to find those bottlenecks.
Speaker B: Or just assess if the current way of doing things can actually handle growth.
Speaker A: Right. There's a really compelling quote in the report from Vikas Kante, head of finance at Meetrashem. Um.
Speaker B: Oh yeah. What did he say?
Speaker A: He said their purchasing process improved easily a 5.10x after using Procurify.
Speaker B: Wow. 5 to 10 times. That really shows the kind of potential we're talking about here.
Speaker A: It really does. Huge potential for efficiency gains.
Speaker B: Often comes down to having the right tools and automation in place.
Speaker A: Okay, let's move to the second objective. Maximize value from suppliers.
Speaker B: Ah, uh, strategic sourcing territory.
Speaker A: Pretty much. The report argues that if you have like tons of vendors but you don't spend much with each one individually you're
Speaker B: negotiating, power gets diluted.
Speaker A: Exactly. You miss out on volume discounts, maybe you get weaker contracts. Strategic vendor management on the other hand, drives savings and reliability.
Speaker B: It's about cultivating relationships with the right suppliers, not just any supplier. Finding the best long term value.
Speaker A: So a few KPIs here. First straightforward number of vendors. Just the total count.
Speaker B: How many suppliers are you juggling?
Speaker A: Right, and it varies wildly. Manufacturing average is around 670, but travel and hospitality over 232356 to be exact.
Speaker B: That's a lot. Do you know how many vendors your organization manages? That raw number tells a story.
Speaker A: It does. Especially combined with the next KPI average spend per vendor. This looks at how well spending is consolidated.
Speaker B: Okay.
Speaker A: Manufacturing shows a high average over $880,000.
Speaker B: Makes sense. Big equipment, raw materials maybe.
Speaker A: Whereas nonprofit is much lower. Around $12,000 per vendor.
Speaker B: Again reflects different needs. But a, ah, low average spend anywhere could mean missed opportunities to consolidate and negotiate harder.
Speaker A: Then there's average items per vendor. Gives you a sense of consolidation efforts. Healthcare averages 96 items per vendor.
Speaker B: Suggests deeper relationships, maybe sourcing more from fewer places.
Speaker A: Could be. Compare them to software, which averages only 15 items per vendor.
Speaker B: Interesting contrast.
Speaker A: Another $0.01% of spend with top five vendors shows supplier concentration, travel and hospitality high over 63%.
Speaker B: Concentrated spend. Good for volume deals maybe, but also risk if something happens to a key supplier.
Speaker A: Good point. Whereas biotech and pharma is much lower, under 15%. Spreading it out more.
Speaker B: Different risk profiles, different strategies.
Speaker A: And finally, percent of spend through pre approved supplier catalogs. This highlights, you know, modern controlled buying
Speaker B: using preferred suppliers and pre negotiated terms.
Speaker A: Yeah, nonprofit actually leads here at almost 48% while software is down near 11 12%.
Speaker B: So more controlled buying, less maverick spend. Pre approved catalogs definitely help with that. And punch out catalogs too.
Speaker A: They streamline things the report mentions. Punch out catalogs? Yeah, linking your system directly to the supplier site for seamless ordering within agreed terms. Higher use often means faster processing, better pricing.
Speaker B: So to maximize supplier value, what should you be asking?
Speaker A: The report suggests, are we relying on too many vendors? Are we tracking vendor performance and cost savings? Are we strategically pushing spend towards preferred suppliers?
Speaker B: And the actions follow from that. Consolidate the supplier base. Review spend regularly to make sure you're
Speaker A: getting those discounts and ensuring purchases actually align with the vendor agreements you have in place.
Speaker B: That regular review is crucial. Things change. Needs evolve, suppliers change. It can't be, set it and forget it.
Speaker A: Absolutely not. Okay, objective number three. Reduce costs and enhance resource management.
Speaker B: Sounds related to efficiency, but with a stronger cost focus.
Speaker A: Exactly. This bit emphasizes how lots of frequent low value POs plus inefficient approvals can really drain resources. Unnecessary costs. Admin burdens.
Speaker B: Those small leaks that add up.
Speaker A: You got it. Tracking these metrics helps you find and plug those leaks.
Speaker B: It's about optimizing the process itself to cut waste. Waste of money, waste of time.
Speaker A: So. So KPI1 here is average spend per purchase order shows how well you consolidate requests.
Speaker B: Okay.
Speaker A: Software has a higher average. $2,350 per po.
Speaker B: Fewer, maybe bigger ticket items, subscriptions.
Speaker A: Tech perhaps. Compare that to healthcare at just $196 per po on average.
Speaker B: Makes sense. More frequent, lower value supplies needed constantly.
Speaker A: Then there's yearly purchase order volume. Gives insight into long term patterns and activity. Healthcare high volume. Over a thousand pos a year on average. 249.
Speaker B: Wow. That's a lot of transactions to manage even if they're smaller value. High admin load for sure.
Speaker A: Software much lower volume. Around 383 per year.
Speaker B: So high volume itself can be a cost driver, putting strain on the procurement team.
Speaker A: Definitely. So the questions to ask here are, are approvals creating too much friction for Low risk buys. Are we seeing just tons of tiny pos? Are we tracking spend per PO and potential actions? Things like setting up automated approvals, maybe spending thresholds. Identifying chances to bundle small purchases into larger orders for better discounts.
Speaker B: Automation and strategic sourcing. Again, setting sensible thresholds can really cut down bottlenecks.
Speaker A: There's another great quote here from a global IT executive at a consulting firm.
Speaker B: What's this one?
Speaker A: They said they saved approximately 70% on their procurement process after implementing Procurify.
Speaker B: 70%? That's huge. It really speaks volumes about the financial impact of optimizing these core processes.
Speaker A: It really does shows what's possible.
Speaker B: Even small seeming process tweaks can have massive bottom line benefits.
Speaker A: Yeah. Okay, last objective. Number four. Monitor financial, health and growth indicators.
Speaker B: Taking a more strategic financial view.
Speaker A: Yeah. This section really underscores how procurement spend patterns can actually be leading indicators of the company's financial stability and growth.
Speaker B: So procurement isn't just buying stuff, it's providing financial intelligence.
Speaker A: Exactly. Tracking these over time helps you make sure spending aligns with the big picture. Business objectives elevates the function for sure. So the KPIs here include average yearly spend. Big picture view of total annual procurement costs.
Speaker B: Must be some massive numbers here.
Speaker A: Oh yeah. Software shows a really high figure. Over $14 billion on average.
Speaker B: Billion with a B. Wow.
Speaker A: While Nonprofit is around $1.9 billion. Still huge, but shows the scale difference.
Speaker B: Tracking that annual trend is obviously vital for forecasting, budgeting, risk assessment.
Speaker A: Absolutely. Then there's average weekly purchase volume. Gives you insight into operational tempo efficiency on a shorter time scale.
Speaker B: Okay. Like a pulse check?
Speaker A: Kinda. Manufacturing have a high weekly volume, around 40 POS. Software is lower, about 13 per week.
Speaker B: Monitoring that weekly number could help spot unusual spikes or dips quickly. Things that need looking into.
Speaker A: Exactly. Could signal demand changes, supply chain hiccups, things like that.
Speaker B: Useful early warning system.
Speaker A: So the questions here are, is our average yearly spend tracking with business growth? Are we seeing weird spikes in weekly volume? Do we actually know where the money's going?
Speaker B: Visibility is key.
Speaker A: Totally. Actions might involve just closely monitoring these trends to catch unsustainable increases or potential supply issues early.
Speaker B: Makes sense.
Speaker A: The report also introduces spend under management, right?
Speaker B: The percentage of spend that goes through formal controlled procurement processes.
Speaker A: Yes. And it notes that high performing Companies often hit 75, 85% sum.
Speaker B: That's a critical metric. Shows how much control and compliance you really have. A high sum suggests policies are working and spend is strategic.
Speaker A: So wrapping it all up, this 2025 procurement benchmark report really makes it clear, doesn't it? Understanding your procurement data isn't optional anymore.
Speaker B: No, it's essential. For efficiency, for value, for cost control, financial health, the whole package.
Speaker A: As the title says, it's about gaining financial clarity through spend visibility and turning
Speaker B: procurement into a strategic advantage, not just a cost center.
Speaker A: Couldn't have said it better. And uh, for anyone listening who wants to dig deeper into how Procurify could help their organization simplify, spend and make
Speaker B: it a strength, where should they go?
Speaker A: They should visit procurify. Com. You can get a demo there, learn more about how it all works.
Speaker B: Simple enough. Procurify. Com.
Speaker A: So as a final thought.
Speaker B: Mhm.
Speaker A: Think about your own organization's numbers, the benchmarks we talked about. What story is your spend telling right now?
Speaker B: And maybe more importantly, what are you going to do to write the next chapter.
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